Lesson 9: What is a 506 Regulation D?
📍 In this video, I'm gonna explain what rule 506 Regulation D is and how that's important for you as an investor. So the SEC provides two distinct options for having an investment platform that is not registered with the SEC, and those fall under rule 506 Regulation D. So there's , 5 0 6 B where the company cannot advertise for investors, but allows for up to 35 sophisticated investors and an unlimited amount of accredited investors. Now, 506 C is different where they can actually go out and advertise for investors. But everybody in the investment has to be an accredited investor, and the company has to go out and do some reasonable verification and make sure that they're only dealing with accredited investors and keep track of that.
So some of those things that you may see would be looking for W 2s tax returns, bank statements, but most likely what you'll see these companies looking for is a letter from CPA. You know, basically stating that they verify that they're an accredited investor. Hopefully this was helpful. If you like these videos, please like, subscribe, and follow.
